<\/p>\n
Physical risks and transition risks grow as governments fail to curb emissions, Moody\u2019s warns.<\/p>\n
The latest data on global greenhouse gas emissions signal growing climate-related credit risks as countries fall far short of their commitments to curb emissions, says Moody\u2019s Ratings.<\/p>\n
In a report, the rating agency noted that new data from the UN Environment Programme showed that global emissions set a new record in 2023, as emissions rose 1.3% from 2022 levels.<\/p>\n
According to that data, \u201ccountries are off track to deliver on their 2030 emission reduction commitments \u2026 creating conditions for a global temperature rise of 3.1 degrees Celsius by 2100,\u201d the Moody\u2019s report said. This projection is far from the Paris Agreement\u2019s target of limiting global temperature rise to 1.5\u00b0C, it noted.<\/p>\n
\u201cUnless countries take substantial policy action to close the gap between ambition and implementation, physical climate risks and related economic and financial losses will significantly increase,\u201d Moody\u2019s warned.<\/p>\n
Companies, governments and infrastructure projects in vulnerable regions, including small island nations and urban areas, particularly in emerging markets, face rising credit risks as a result, the report suggested.<\/p>\n
\u201cThe prevailing pace of carbon transition will not prevent significant climate impacts and associated economic costs, and a delayed transition will translate into higher negative effects from physical climate risks and growing adaptation investment needs,\u201d it said.<\/p>\n
To get back on track with the Paris Agreement commitments, countries would have to commit to cutting emissions by 42% for 2030, and by 57% for 2035, it noted.<\/p>\n
The increase in global emissions in 2023 also means that the reductions needed are larger, and it said that \u201c7.5% must be shaved off emissions every year until 2035 to reach the 1.5\u00b0C target.\u201d<\/p>\n
The drastic action on emissions needed to meet those goals \u201cwould significantly raise transition risks for the most exposed issuers,\u201d Moody\u2019s said. It considers companies with a combined US$4.9 trillion of debt as having high exposure to carbon transition risks.<\/p>\n
\u201cCarbon-intensive industries would face high stranded asset risk, project cancellations and the need for a massive scale-up of investments in new technologies,\u201d it said.<\/p>\n
Any effort to implement the needed emission cuts will also face \u201cmajor challenges,\u201d the report said, including concerns about energy security, the rising cost of living and financing constraints that will \u201cmake it more likely that these targets will be missed.\u201d<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Physical risks and transition risks grow as governments fail to curb emissions, Moody\u2019s warns. The latest data on global greenhouse gas emissions signal growing climate-related credit risks as countries fall far short of their commitments to curb emissions, says Moody\u2019s Ratings. In a report, the rating agency noted that new data from the UN Environment […]<\/p>\n","protected":false},"author":1,"featured_media":2828,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/11\/Climate-change-33-880x445.jpeg",880,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/11\/Climate-change-33-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/11\/Climate-change-33-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/11\/Climate-change-33.jpeg",880,587,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=2827"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2827\/revisions"}],"predecessor-version":[{"id":2829,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2827\/revisions\/2829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/2828"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=2827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=2827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=2827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}